Search Warrants Served at Granite Park

State and federal agents swarmed into Fresno's Granite Park complex.Local police helped agents from the State Department of Insurance, and the IRS, serve search warrants at the Public House and the former Cabo Wabo nightclub.

State agents say it was part of an insurance fraud investigation. The new owner of the former Cabo Wabo club, Kirk Vartanian says it's the result of an insurance claim filed over more than one hundred thousand dollars in audio and video equipment that was stolen from the club before he bought it.

Kirk Vartanian said, "Well, I'm the new owner and it's part of the escrow, that stuff was supposed to be replaced. We're waiting for the check, we never got the check, and I think now they pull this, so maybe they don't want to pay."

Vartanian says this will not affect his plans to re-open the Cabo Wabo building as a new club, called the Edge, next month. Agents also raided the home of Milt Barbis, the original developer of the property. Investigators removed boxes full of files.

Tax payer money is also on the line. The city council guaranteed a five-million dollar loan connected to Granite Park. The Fresno city manager told Action News ... The city knew about the investigation, and they are unsure what Thursday's raid means for tax payers.

Fresno City Manager Andy Souza said, "We are going to have to work with the attorneys to see this creates a difference in what our liability will be, if it has any effect on the guarantee. A lot of this will be drive by what actually comes out of the investigation."

The city manager said the property is going to foreclosure soon. City council members may soon need to decide how they are going to recoup the five-million dollar loan.